Having very much confusion on Investment advisory firm and Investment management firm selection process. Could you please explain or point any link to understand concept -------------- Which of the following statements about investment companies is least accurate? A) Generally the investment advisory firm initiating the fund will also act as the fund’s investment management company. B) Investment companies are generally wholly owned subsidiaries of the investment advisory firm that creates them. C) The investment company’s board of directors hires an investment management company to select securities, manage the portfolio, and handle administrative duties. D) The typical management fee is 1/4 to 1 percent of the fund’s net asset value. Your answer: C was incorrect. The correct answer was B) Investment companies are generally wholly owned subsidiaries of the investment advisory firm that creates them. Investment companies are owned by individual investors. For example, individuals who purchase shares in a mutual fund are the “owners” of that fund.